A bevy of gold miners reported first-quarter earnings this week, and the results were nothing short of stellar. If you’re looking to ride the current gold rush, you may want to consider gaining exposure through gold-miner related exchange traded funds (ETFs).
- Newmont Mining’s profits soared in the first quarter, thanks to higher gold and copper prices, as well as increased production. [Why Gold Miner ETFs Are Striking While the Iron Is Hot.]
- Revenues at Goldcorp rose 20% from a year earlier, and gold production increased as well.
- Barrick notched record profits in the first quarter, doubling its income on increased production, as well as gold and copper sales. Gold production soared 19% in the first quarter.
A few of the fundamentals supporting gold these days include:
- Inflation fears still hovers in the minds of many an investor and gold is considered an adequate way to hedge against that risk.
- Economic strength in emerging markets such as China and India means that consumers have more income to sate their gold demands.
- The recent financial problems in Europe that stem from Greece’s budget problems and the rest of the continent’s link to the mess as a result of the euro has also brought gold to new all-time highs against the currency. [Why Gold Miner ETFs Are Outperforming Gold.]
If you’re more risk-tolerant, you may want to consider a small-cap approach to gold miners through Market Vectors Junior Gold Miners (NYSEArca: GDXJ). The fund has high daily trading volumes, but it’s a little more volatile than GDX.
For more information on gold miners, visit our gold miners category.
Max Chen contributed to this article.